Palm oil falls amid weaker performance in other vegetable oils
Malaysian palm oil futures declined for a second consecutive session on Monday, pressured by weaker soybean oil and other vegetable oils on the Chicago and Dalian exchanges. The December contract on Bursa Malaysia fell 0.19% to 4,663 ringgit ($1,142)/t after dropping 4.61% last week.
Dalian’s most-active soyoil contract declined 0.84%, while palm oil fell 1.6%. On CBOT, soyoil slipped around 0.24%, also limiting any recovery in the Malaysian market.
At the same time, stronger crude oil prices and a weaker ringgit helped limit losses. Brent crude rose more than 3% on Monday, making palm oil more attractive as a biodiesel feedstock.
Weaker export figures also weighed on the market. According to Intertek Testing Services and AmSpec Agri Malaysia, Malaysian palm oil exports for September 1–25 fell by 15.1–24.3% from the previous month.
Indonesia’s palm oil exports in July stood at 3.19 mln tons, down 9.87% y/y. According to a Reuters technical analysis, palm oil prices could extend losses towards a range of 4,588–4,622 ringgit/t.
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